- The Brazilian central bank, Banco Central do Brasil, is initiating a digital currency pilot program with 14 participants, including international and domestic companies like Microsoft, Visa, Santander, and major Brazilian banking institutions
- The digital real’s value will align with the national traditional currencyspecifically focusing on a delivery versus payment protocol for government-owned securities
- Brazil, being the largest nation in Latin America, continues to attract international crypto companies
International and domestic entities are set to join the Brazilian central bank’s impending digital currency trial program. The nation’s primary banking institution, Banco Central do Brasil, is preparing to onboard players to the virtual natural ecosystem, anticipated to commence in mid-June 2023.
On the 24th of May, the central bank made public the finalized lineup for the digital currency trial participants. Selections were made from a whopping 36 proposals submitted by individual firms and coalitions, representing over a hundred establishments. The end tally of participants come to 14, although some act as representatives for multiple firms. A striking example of such representation involves:
- US tech behemoth Microsoft.
- A leading Brazilian bank, Banco Inter.
- Digital tech firm 7COMm, all assembled into one of the 14 participating units.
Other notable names in the lineup include Visa, Santander, and a range of Brazilian banking powerhouses such as Itaú Unibanco, BTG Pactual, and Banco Bradesco.
In this stage of the virtual actual trial, the primary bank aims to evaluate its platform’s confidentiality and programmable features centered around one particular use case: a delivery versus payment protocol for government-owned securities.
The Brazilian digital currency trial was officially unveiled in 2022. The digital real’s value would align with the traditional national currency, the real, and would be distributed over some time with a predetermined supply limit.
Home to 214 million people, Brazil, the largest nation in Latin America, continues to magnetize global cryptocurrency firms. Earlier this year, Binance and Mastercard collaborated to introduce a prepaid crypto card in Brazil. Since March, Coinbase has established partnerships with local payment services, facilitating crypto and local currency deposits and withdrawals. On the 19th of May, Latam Gateway — Binance’s payment facilitator in Brazil — received official approval from the central bank to function as a payment institution and issuer of electronic money.
Brazil is One of the Leading LatAm Countries for Crypto
As one of the frontrunners in Latin America’s cryptocurrency landscape, Brazil is quickly emerging as a hotspot for digital financial innovation. The nation’s burgeoning activity in the crypto sector is becoming a beacon, luring tech heavyweights from the US and beyond to form strategic alliances with local fintech firms.
These partnerships are designed to bring more inclusive access to digital financial services for the country’s massive population. Launching the real digital pilot is a testament to this trend, involving both local and international tech giants, making Brazil a focal point in the global crypto sphere. As more international companies partner with Brazilian fintech, it’s expected that the populace will benefit from enhanced access to digital currency, reflecting Brazil’s commitment to financial inclusivity and technological progress.
